Milwaukee County Transit System Milwaukee County Transit System A - - PowerPoint PPT Presentation

▶
milwaukee county transit system milwaukee county transit
SMART_READER_LITE
LIVE PREVIEW

Milwaukee County Transit System Milwaukee County Transit System A - - PowerPoint PPT Presentation

Jul 22, 2023 182 likes •345 views

Milwaukee County Transit System Milwaukee County Transit System A System at the Crossroads A System at the Crossroads May 2010 May 2010 Presented by: Anita Gulotta- -Connelly Connelly Presented by: Anita Gulotta Managing Director

slide-1
SLIDE 1

Milwaukee County Transit System Milwaukee County Transit System

A System at the Crossroads A System at the Crossroads May 2010 May 2010

Presented by: Anita Gulotta Presented by: Anita Gulotta-

  • Connelly

Connelly Managing Director Managing Director

slide-2
SLIDE 2

MCTS Operating Budget Revenue Sources

Passenger Fares and Other Revenues 35.6% Milwaukee County 11.0% Federal 13.3% State 40.1%

slide-3
SLIDE 3

MCTS Capital Projects Revenue Sources

Federal 80%

Milwaukee County 20%

slide-4
SLIDE 4

2010 Operating Budget 2010 Operating Budget

$ Revenue Sources $ Revenue Sources

  • Federal

Federal $23.0 million $23.0 million

  • State

State $69.5 million $69.5 million

  • Passenger Fares and Other Revenue

Passenger Fares and Other Revenue $61.6 million $61.6 million

  • Milwaukee County

Milwaukee County $ $19.1 million 19.1 million

Total Total $173.2 million $173.2 million

Annual Capital Requirements Annual Capital Requirements -

  • $16

$16-

  • 20 million

20 million

  • Federal

Federal $16 million $16 million

  • Local

Local $ 4 million $ 4 million

$39 million

slide-5
SLIDE 5

Federal Transit Operating and Capital Assistance Federal Transit Operating and Capital Assistance

Average Average 1999 1999 – – 2004 2004 Average Average 2005 2005 – – 2009 2009 Formula Funds Formula Funds $17.4 million $17.4 million $17.9 million $17.9 million Earmarks Earmarks $11.0 million $11.0 million $ 1.9 million $ 1.9 million

Total Total $28.4 million $28.4 million $19.8 million $19.8 million

slide-6
SLIDE 6

Federal Capital Reserve Federal Capital Reserve

  • January 2001

January 2001 $43.7 million $43.7 million

  • January 2005

January 2005 $21.1 million $21.1 million

  • January 2010

January 2010 $ 1.2 million $ 1.2 million

slide-7
SLIDE 7

Meeting Past Budget Challenges Meeting Past Budget Challenges

  • Healthcare and Pension

Healthcare and Pension

  • Eliminated retiree healthcare for all employees hired after 4/1/

Eliminated retiree healthcare for all employees hired after 4/1/ 07. 07.

  • Initiated employee premium contributions for healthcare coverage

Initiated employee premium contributions for healthcare coverage. .

  • Required that even previously retired individuals must contribut

Required that even previously retired individuals must contribute to e to healthcare costs. healthcare costs. Retirees can pay as much as $695 per month for out Retirees can pay as much as $695 per month for out

  • f area coverage.
  • f area coverage.
  • Instituted a smaller network HMO plan with significant deductibl

Instituted a smaller network HMO plan with significant deductibles. es. Saves several thousand dollars per year per participant Saves several thousand dollars per year per participant. .

  • Pension: No drop back provisions. Plan is near fully funded.

Pension: No drop back provisions. Plan is near fully funded. Have Have maintained pension benefits within resources of the fund to pay maintained pension benefits within resources of the fund to pay for for those benefits. those benefits.

  • Employees contribute 15% of the actuarially determined costs of

Employees contribute 15% of the actuarially determined costs of the the pension plan. pension plan.

slide-8
SLIDE 8

Meeting Past Budget Challenges Meeting Past Budget Challenges

  • Other Actions

Other Actions

  • Use fuel futures to stabilize fuel costs to within

Use fuel futures to stabilize fuel costs to within budget budget

  • Non

Non-

  • operating staff reductions
  • perating staff reductions
  • Wage freezes

Wage freezes

  • Furlough time off

Furlough time off

  • Outsourcing vs. internal work

Outsourcing vs. internal work

  • Competitive bidding

Competitive bidding

  • New approaches

New approaches

  • Overall cost control

Overall cost control

slide-9
SLIDE 9

State Audit Conclusions State Audit Conclusions

  • Lowest cost per passenger

Lowest cost per passenger

  • Lowest percent of administrative cost

Lowest percent of administrative cost

  • Highest ridership per capita

Highest ridership per capita

slide-10
SLIDE 10

2011 Budget Gap 2011 Budget Gap

2010 Costs 2010 Costs + + Increases in Costs Related to Existing Increases in Costs Related to Existing Employees and Retirees Employees and Retirees + + Increases in Costs for Utilities, Fuel , etc. Increases in Costs for Utilities, Fuel , etc. + + Estimated Reductions in Federal and State Estimated Reductions in Federal and State Aids, Aids, and Other Revenues and Other Revenues = = 2011 Budget Gap 2011 Budget Gap

slide-11
SLIDE 11

2011 Budget Gap 2011 Budget Gap

  • Assumes

Assumes no no reduction in current service reduction in current service levels levels

  • Assumes

Assumes no no change in staff change in staff

  • Assumes

Assumes no no Furlough Days in 2011 Furlough Days in 2011

  • Assumes

Assumes no no new services new services

slide-12
SLIDE 12

2011 Budget 2011 Budget

  • The Good News

The Good News…… ……. ARRA . ARRA Transit Capital Transit Capital Low cost financing Low cost financing for local government for local government

  • Through the combination of ARRA funds and Milwaukee County Inves

Through the combination of ARRA funds and Milwaukee County Investment, 125 new buses, tment, 125 new buses, new fareboxes, a bus stop annunciator system, new roof on the Ad new fareboxes, a bus stop annunciator system, new roof on the Administration building and ministration building and new HVAC systems for several MCTS facilities will be purchased i new HVAC systems for several MCTS facilities will be purchased in 2010/2011. Local bonding n 2010/2011. Local bonding for these projects was done in 2010. for these projects was done in 2010.

  • Total Investment:

Total Investment: $58.4 million $58.4 million

  • Federal (including ARRA funds)

Federal (including ARRA funds) $41.2 million $41.2 million

  • Milwaukee County

Milwaukee County $17.2 million $17.2 million

* No other major capital investments are needed for 2011 * No other major capital investments are needed for 2011 * Therefore * Therefore – – lack of Federal capital dollars is not an issue for 2011 lack of Federal capital dollars is not an issue for 2011

slide-13
SLIDE 13

2011 Budget Gap 2011 Budget Gap

The Challenges: The Challenges:

Adjustment (in millions) Adjustment (in millions)

Preliminary Estimates Preliminary Estimates

  • 2010 Revenue projected to be significantly below budget

2010 Revenue projected to be significantly below budget $4.2 $4.2

  • One time adjustment in Medicare Part D revenue in 2010

One time adjustment in Medicare Part D revenue in 2010 $1.7 $1.7

  • Reduction in JARC funding

Reduction in JARC funding $ .7 $ .7

  • Employee/Retiree medical expense

Employee/Retiree medical expense $3.5 $3.5

  • Fuel

Fuel $1.8 $1.8

  • Expense of Transit Plus ridership increases

Expense of Transit Plus ridership increases $2.1 $2.1

  • Potential loss of Title XIX funding for Paratransit rides

Potential loss of Title XIX funding for Paratransit rides $1.8 $1.8

  • Increase in bond interest

Increase in bond interest $ .5 $ .5

Total I ncrease / Cost to continue Total I ncrease / Cost to continue $16.3 $16.3

slide-14
SLIDE 14

2011 Budget Gap 2011 Budget Gap

Known Off Known Off-

  • Sets

Sets

Adjustment (in millions) Adjustment (in millions)

Preliminary Estimates Preliminary Estimates

  • Restored Milwaukee County Investment

Restored Milwaukee County Investment

  • Increase in State Revenue

Increase in State Revenue $2.1 $2.1 $1.7 $1.7

  • Non

Non-

  • Operator Employee Reductions made by MCTS

Operator Employee Reductions made by MCTS $1.0 $1.0

  • Pension Contribution Reduction

Pension Contribution Reduction $. 6 $. 6

  • Increase in employee/Retiree healthcare

Increase in employee/Retiree healthcare Contributions; healthcare plan modifications Contributions; healthcare plan modifications $ .7 $ .7

Total Known Off Total Known Off-

  • Sets

Sets $6.1 $6.1

Budget Gap $10.2

slide-15
SLIDE 15

Possible Resolutions Possible Resolutions

  • Additional internal savings

Additional internal savings

  • Additional county investment

Additional county investment

  • Changes in Paratransit funding

Changes in Paratransit funding

  • Changes in Paratransit service area

Changes in Paratransit service area

  • Service cuts

Service cuts

  • Fare increases

Fare increases

  • Other

Other

slide-16
SLIDE 16

Budget Process has just begun Budget Process has just begun… ….. ..

  • May or may not be able to meet 2011 challenges without

May or may not be able to meet 2011 challenges without impacting service. impacting service.

  • $10.2 million equals a 14% service cut or 188,000 hours of

$10.2 million equals a 14% service cut or 188,000 hours of service per year. service per year.

  • For 2012, will have similar challenges and will need to

For 2012, will have similar challenges and will need to purchase additional buses. 30 purchase additional buses. 30-

  • 40 buses with no reserve of

40 buses with no reserve of Federal dollars Federal dollars – – Approximately $14 million. Approximately $14 million. Whether the crisis occurs in 2011 or beyond Whether the crisis occurs in 2011 or beyond… ….. .. A long term funding solution is required to maintain A long term funding solution is required to maintain transit services in Milwaukee. transit services in Milwaukee.